Planning at Different Levels in the Organization
DIFFERENT LEVELS OF ORGANIZATION
Top Manager STRATEGIC PLANNING
Middle Managers TACTICAL PLANNING
First Line Managers OPERATIONAL PLANNING
STRATEGIC PLANNING
is an outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments.
Strategic Planning Process: Mission Objectives Situation Analysis Strategy Formulation Implementation Control
MISSION
A companys mission is its reason for being. The mission often is expressed in the form of a mission statement, which conveys a sense of purpose to employees and projects a company image to customers. In strategy formulation process, the mission statement sets the mood of where the company should go.
OBJECTIVES
S-pecific M-easurable A-chievable R-ealistic T-ime bound
SITUATION ANALYSIS
P-olitical E-conomic S-ocial T-echnological S-tengths W-eaknesses O-pportunities T-hreats
STRATEGY FORMULATION
The rules and guidelines by which the mission, objectives etc. may be achieved. They can cover the business as a whole including such matters as diversification, organic growth, or acquisition plans, or they can relate to primary matters in key functional areas.
IMPLEMENTATION
The process that turns strategies and plans into actions in order to accomplish strategic objectives and goals.
CONTROL
Once implemented, the results of the strategy need to be measured and evaluated, with changes made as required to keep the plan on track. Control systems should be developed and implemented to facilitate this monitoring. Standards of performance are set, the actual performance measured, and appropriate action taken to ensure success.
TACTICAL PLANNING (Middle Managers)
The manager will have already developed top-level objectives and strategies. The manager then will need to develop additional strategizes that identify and define specific plans and programs (the tactics) that ultimately take the business plan from paper to the people, whether customers or
OPERATIONAL PLANNING (First-Line Managers)
Translates that strategic planning into the everyday execution tactics of the business that will ultimately produce the outcomes defined by the strategy. Simply stated, operational planning is the conversion of strategic goals into managed execution.